Working capital, also known as net working capital, is the difference between a company's current assets like cash, accounts receivable, and inventories and its current liabilities like accounts payable. Net operating working capital refers to the difference between operating current assets and operating current liabilities. These calculations are usually the same and derived from cash plus accounts receivable plus inventories minus accounts payable and accrued expenses.

1. S.Binthia, Dept of MBA

2. Working capital, also known as net working capital (NWC), is
the difference between a company’s current assets, such as cash,
accounts receivable (customers’ unpaid bills) and inventories of raw
materials and finished goods, and its current liabilities, such as
accounts payable.
Net operating working capital is a measure of a company's
liquidity and refers to the difference between operating current assets
and operating current liabilities.
In many cases these calculations are the same and are
derived from company cash plus accounts receivable plus
inventories, less accounts payable and less accrued expenses.

7. Sl.No Production Cycle Operating Cycle
1. It is a narrow term. It is a wider term.
2. It is a part of the operating cycle. It includes production cycle also.
3. Time involved in the manufacture of
goods.
Time involved in the flow of cash to
cash.
4. It covers the time span between the
raw material and finished goods.
It covers the time span between the
flow of cash to supplier, to inventory, to
accounts receivable and back into cash.
5. It may be different due to
technological consideration.
It may be different due to various cycle
of events.